With sales falling 11.1% in the first quarter, to $104 million, Books-A-Million reported a net loss in the period ended April 30 of $3.5 million. In last year’s first quarter BAM had net income of $2 million. Comparable store sales were down 13.2%. BAM’s Terry Finley called the first quarter a “very difficult sales environment” that reflected the erosion of print book sales to e-book sales, a weak bestseller lineup, and soft media environment, exacerbated by the tornados that ripped through the southeast.
Responding to the chances in the book market, BAM continued to expand its bargain book offerings in the quarter as well as its electronic and electronic accessories; the chain began selling the Nook family of devices last year and Finley said BAM sees more opportunities for growth in the area. BAM will continue to diversify its store mix, Finley said, and has seen success with the addition of more DVDs, CDs, videogames, gifts, and educational toys.
Finley said he expects the second quarter to be another challenging period with a soft sales environment due to the digital transition and modest publishing lineup that should start to stabilize in the quarter.
